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Curve Holding Flatter, NAB Lifts RBA Terminal Rate Forecast

AUSSIE BONDS

ACGBs are sitting 2bps cheaper to 5bps richer, the curve has twist flattened pivoting on 10s.

  • XM is ~2bps firmer and YM are little changed thus far dealing in narrow ranges.
  • NAB has lifted their RBA terminal rate forecast to 4.6% from 4.35%, the bank now sees 25bp hikes in July and August.
  • The CBA household spending intentions (HSI) rose 3.1% m/m and 4.7% y/y. Westpac Consumer Confidence rose 0.2% to 79.2. NAB Business Confidence fell to -4 from 0 in May and Business Conditions fell to 8 from 14.

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